The Interface Financial Group Announces Small Businesses Can Avoid Cash Flow Crunch During the Holidays via Factoring

BETHESDA, MD--(Marketwire - December 12, 2008) - The Interface Financial Group (IFG), North America's largest alternative funding source for small business, recognizes that this year's economic times present financial challenges for many small businesses, especially for those in the retail sector. Christmas is one of the most difficult times for businesses when it comes to cash flow because of extra expenses such as marketing, extra stock and shipping, plus the holiday season also sees a rise in overtime, vacation leave payments and labor bills for staffing up. The recent tightening of credit markets has been especially hard on small businesses.

In the United States, business analysts are predicting that thousands of small businesses will not go bust by the New Year if they are unable to access additional funding. According to18 percent of small-business owners, in an American Express OPEN survey, they are at risk of going out of business because of economic conditions, up from 9 percent in August. 79 percent of small-business owners said sales are decreasing. About two-thirds of the respondents said the tightening of credit has affected their business. This is compared to 50 percent in August 2008, and has resulted in 12 percent in staff layoffs. 79 percent said sales are decreasing and 51 percent said they have had to tap personal assets in order to pay business expenses. The OPEN survey was conducted October 6-7 using a nationally representative sample of 602 small business owners and managers of companies with fewer than 100 employees.

"The current financial crisis is not only affecting large companies in the U.S, but small businesses are very concerned about making through the holidays," said Noah Gershon, vice president, IFG. "Small firms need to know how to manage their expenses and debt obligations and need to become experts on planning for cash flow maintenance," notes Gershon. "In order for small businesses to make it in the New Year they should take a look at alternative financing options that will provide extra cash flow, the life blood of any successful business."

Increased sales typically increase cash flow, but when sales are made on credit, when sales increase, only the accounts receivable increase, not the cash. As inventory is depleted and needs to be replaced, and receivables usually will not be collected until 30, or even 60 to 90 days after the sales, an increase in holiday sales can quickly deplete a firm's cash reserves. Gershon's advice for managing cash flow include:

-- Make sure billing, collections, and payables systems are efficient.

-- Keep an eye on customer credit limits.

-- Negotiate pre-New Year settlements with debtors.

-- Share credit terms upfront with customers.

-- Purchase a cash flow management system.

-- Watch overdue accounts carefully.

-- Manage payables by waiting as long as allowed (without late fees) to pay company bills.

-- Single invoice factoring can speed up cash flow and increase working capital.

Many businesses do not get paid immediately for delivered products or services. Single invoice factoring benefits businesses that do not get paid for 30, 60 or 90 days by advancing up to 90 percent against these invoices. IFG looks at the creditworthiness of the client's customers and can fund within as little as 24 hours. Unlike some factoring companies, IFG does not expect to buy 100 percent of a company's receivables, and there are no minimum or maximum sales volume requirements. Invoice factoring is not a loan so there are no upfront fees, no co-signers required, and no accounts to open, so small businesses can benefit by receiving working capital during tough economic times

Single invoice factoring or spot factoring is a highly effective cash management strategy. It is basically a discounting service that is superior to standard invoice factoring, receivable financing, receivable funding or assets based lending. The Interface Financial Group (IFG) typically looks at the creditworthiness of a client's customers and pays within as little as 24 hours. IFG does not expect to buy 100 percent of a company's receivables, and there are no minimum or maximum sales volume requirements. IFG's professional rates are competitive because each client's circumstances vary, which may have an impact on the fees charged. The program allows choices of invoices to be factored, enabling customers to retain most of their money, while spending the minimum fees to guarantee adequate cash flow.

"Services provided by IFG allowed us to capitalize on significant growth opportunities over a short period of time, tripling our workforce, and increasing our revenue tenfold," said Carol Craig, president of Craig Technologies.

Standard accounts receivable factoring has been around for more than 4,000 years. IFG begins the single invoice factoring process with due diligence that typically takes one to two business days. Once completed the client is at liberty to offer invoices to IFG for purchase. Upon receipt of invoices, IFG checks the credit of the debtor named on the invoice and makes sure that the sale represented has been satisfactorily completed. Once this is done the debtor is advised of the purchase by IFG and the client receives their funding. At the end of the credit period, the debtor pays IFG directly completing the transaction.

About The Interface Financial Group (www.ifgnetwork.com)

The Interface Financial Group (IFG) is North America's largest alternative funding source for small business, providing short-term financial resources including spot factoring (invoice discounting). The company serves clients in more than 30 industries in the United States, Canada, Australia, and New Zealand, and offers cross-border transaction facilities between the U.S. and Canada. With more than 140 offices across North America and over 35 years of experience, IFG provides innovative invoice factoring solutions by offering short-term working capital to growing businesses. Single invoice factoring, or spot factoring, is an extremely fast way to turn receivables into cash.

IFG was founded in 1972 to provide short-term working capital to help small to medium sized businesses grow. The IFG organization operates on a local level, providing clients with local knowledge and experience and business expertise in numerous diverse areas including accounting, finance, law, marketing and banking.

Contact Information: Media Contact: Kristin Gabriel MarCom New Media T: 323.650.2838 E: Headquarters: The Interface Financial Group, Inc. 7910 Woodmont Avenue, Suite 1430 Bethesda, MD 20154 T: Toll Free: USA; 877.210.9748 Canada; 877.340.6893